The ECON MUNI Institute of Public Administration has long been providing expertise to public administration entities in solving their problems and seeking new opportunities. Last year, for example, they prepared development concepts for the town of Krnov and the associations of municipalities of Němčicko and Tišnovsko. In this interview, the head of the institute presents what the data shows about future development and how cities and municipalities can effectively respond to the changing needs of residents and other external and internal factors.
The impulse came directly from the town. Like many other municipalities in Czechia, Krnov was dealing not only with the current situation, but above all with future demographic developments that will inevitably affect the functioning of local governments. One of the areas where these changes will be most noticeable is education.
Municipalities are the establishers of schools and thus have a fundamental influence on their functioning. In addition, recent legislative changes have further strengthened their role in management. This is one of the reasons why cities, municipalities and, more recently, communities and associations of municipalities are increasingly looking for more effective management models that will stand the test of time.
The specific feature of this project was its emphasis on a comprehensive approach. This is not always a given. It was not just about operational analysis and school management, but also about demographic projections and assessing the technical condition and prospects of school buildings. The city thus obtained a vivid and data-driven picture of the situation, including alternative scenarios for further development, taking into account current and future demographics, the state of infrastructure, operational settings and the legislative framework. This allows it to base its next steps on an evidence-based approach and prevent risks better. In practice, the broader context is often missing, and decisions are then based on only one scenario or a limited amount of information.
The Němčicko micro-region has undergone a transformation into a new form of community of municipalities, which differs from traditional voluntary associations in terms of its possibilities and competences. It was this change that prompted the creation of a conceptual document based on a comprehensive analysis of the territory comprising 17 towns and municipalities.
The aim was not only to describe the current situation, but above all, in cooperation with the community leadership, to propose a strategy for further development, which was subsequently approved by the mayors of the member municipalities. Such a document represents an important starting point for the coordinated development of the territory, which transcends the boundaries of individual land registry areas.
The joint identification of problems and opportunities and the setting of priorities make it possible to proceed systematically and address challenges that would be difficult for individual municipalities to tackle on their own. This is precisely where the great potential of the community of municipalities lies for the future. Current legislative changes also give these structures stronger powers and open up space to better respond not only to the long-term problem of fragmentation of public administration in Czechia, but also to new challenges. For example, demographic developments, climate change, and changes in consumer behaviour.
The decline in the birth rate is a nationwide phenomenon. Each region experiences it in a different time frame, for example, depending on whether construction is still underway and young families are moving in, but sooner or later it will affect everyone. However, demographic change cannot be reduced to a decline in the number of children, even though this is very noticeable from an educational perspective. An equally significant trend is the ageing of the population. If the age structure of the population of a town or its catchment area changes significantly, this will be reflected in the functioning of the local government, both in its role as a public administration body and as a local economic actor.
Moreover, these processes are long-term and have considerable inertia, which often amplifies their impact. Each age group has specific needs, and the city must respond to them with appropriate infrastructure. From nurseries and schools to playgrounds to social and health services. Infrastructure must either be built or maintained. However, if demand falls as a result of demographic changes, buildings and fixed costs remain.
Schools and nurseries are a typical example: even if the number of children and therefore the number of teachers decreases, the building still needs to be maintained and operated at full capacity. The service is thus gradually subsidised at the expense of other areas where demand may be growing, such as social services, healthcare or housing.
If I had to highlight two things, they would be a high-quality, data-driven and timeless strategy and adequate financial security. These two areas are closely linked. Without a thorough analytical component, it is not possible to realistically assess the current state of the territory, identify its strengths and, above all, its weaknesses, and propose alternative scenarios for further development.
A comprehensive and interdisciplinary approach allows us to offer cities, municipalities and their associations a broader perspective than, for example, a financial audit. Linking analytical outputs with strategic planning helps to find truly effective solutions. These are then reflected not only in the amount of investment, but also, and often more importantly, in future operating costs. In public debate, attention often focuses primarily on the price of the investment itself, while long-term operating costs are left aside.
These three studies revealed two different situations. On the one hand, there was a larger town that could seek solutions primarily in increasing its own efficiency and making better use of existing resources. On the other hand, there was an area made up of smaller municipalities, where mutual cooperation and the search for a common approach proved to be the most promising path. Whether in overall development or in selected areas such as education or social services.
In both cases, however, one fundamental rule was confirmed: if a municipality really wants to solve a problem, it must first openly acknowledge it and identify it as objectively as possible. This means starting with a high-quality, ideally comprehensive and interdisciplinary analysis based on data. This should then be followed by a well-thought-out strategy that is closely linked to the analytical part. Cities, municipalities and their associations usually do not have extensive internal analytical capacities, nor do they need them on a permanent basis given their daily agenda. However, they often need specialised background information at key decision-making moments. In such situations, it is therefore effective to use external expert support, which allows fundamental decisions to be based on high-quality and independent analysis.
Filip Hrůza is the director of the Institute of Public Administration at the Faculty of Economics and Administration at Masaryk University and a lecturer at the Department of Public Economics. Outside of ECON MUNI, he also serves as the deputy mayor of a city district and a member of the Brno City Marketing Council.
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